Tuesday, September 28, 2010

Nogales AZ Mayor Indicted for Fraud, Theft, Money Laundering

I predict that there is much more to this story.  Mayor Octavio Garcia-Von Borstel has been under investigation for a variety of things since he was appointed in 2007.  According to what's on the internet, it's all related to money.  I expect illegal smuggling will turn up as well.  He has close family ties to Nogales, Mexico and has never held a real job but lived like he was wealthy.  Yes indeed, there is much more to this story than we now know.

Look at this guys official bio/resume and keep in mind that this is what he thinks is good.  He's never held a real job!  He's Obama!
Octavio Garcia - Von Borstel was born in Nogales, AZ in 1980. He is the son of Octavio Garcia - Suarez and Maricela Von Borstel de Garcia. He is the Grandson of ex - Mayor of Nogales, Sonora - Mexico, Octavio Garcia - Garcia and Maclovia Suarez de Garcia. Also, of Fransisco Von Borstel and Arabella Mendez de Von Borstel.

Octavio attended the Nogales Unified School District and has always been very active in his community. He was a well rounded athlete and student earning the Athlete/Student Scholar Award and the Senior Athlete Award at Nogales High School. He participated in Track, Tennis, Soccer and Football (History Season 97). He devoted a lot of his time in the summer as a Tennis instructor at the Rio Rico Racquet Club. During his years at the University of Arizona he was elected Philanthropy Chair of Sigma Chi Fraternity in 1999 and dedicated himself in helping the Ronald McDonald House Foundation and Building and Re-Modeling homes for people in need in Nogales, Sonora - Mexico. In 2000 he was elected Social Chair and together with his Fraternity began a movement group to do volunteer work and drive students that were under the influence of alcohol home to relieve drunk driving. In 2002, Octavio moved to Vancouver, British Columbia - Canada to volunteer as a Soccer Assistant in a Youth Soccer Club and spent much of his extra time providing positive leadership skills to Middle School Students. He admits Canada was a great opportunity and provided him great confidence in helping others. After a successful journey in Canada, Octavio settled back in his native land of Nogales, AZ and pursued a career in the family business. At the same time he started committing himself in different leadership roles in various organizations and groups that together serve the people of his community. He currently serves as the Chairman of the Advisory Board of Adult Education and is the Chairman Elect of the Nogales/Santa Cruz Chamber of Commerce.

The mayor of Nogales, Ariz. shuffled shackled into a Santa Cruz County court this afternoon wearing a striped jail suit and was accused of having access to unexplained millions of dollars.

Earlier in the day Octavio Garcia-Von Borstel had been arrested in connection with a criminal indictment on multiple charges including bribery, theft, fraud and money laundering. Garcia-Von Borstel, 29, was arrested at his office at the Nogales City Hall Tuesday morning while search warrants were being conducted at his home, business and City Hall office, according to a news release from the state Attorney General's Office.

The mayor's father, Octavio Suarez Garcia, 59, of Nogales, was also indicted and arrested Tuesday. He faces several charges that include fraud, theft and money laundering.

Justice of the Peace Mary Helen Maley set bail for Garcia-Von Borstel and his father at $250,000 each. She also granted prosecutors' request to examine the source of the money if the defendants post a cash bond. The reason for the request was related to money that investigators say they saw passing through defendants' bank accounts, said Assistant Attorney General Kim Ortiz.

"There was over $10 million that ran through these accounts in the last 24 months," she said.

"These charges are serious violations of the law. Because some charges involve the official actions of an elected official, they violate the public trust," Terry Goddard said in a news release today. "Both the mayor and his father will be held accountable and prosecuted to the full extent of the law."

The father and son pleaded not guilty to the charges they face in two separate indictments. Attorney Christopher Scileppi said the two "will be defending against these charges aggressively."

The FBI began investigating Garcia-Von Borstel five months ago and determined that he was soliciting Nogales businesses to hire him as a consultant as early as February 2009, Goddard's office says. At least one business admitted to the FBI that it was paying the mayor to use his official position to obtain business contracts and, specifically, to obtain new City of Nogales contracts, circumventing either open bidding or proper application processes.

The state prosecutor also claims Garcia-Von Borstel also received money from at least one business in exchange for utilizing his official position to protect a contract the business owner had with the city and to assist the business owner in obtaining an additional city contract.

The mayor's father was an agent for Western Union and the state claims he fraudulently reported that money orders worth $3.2 million were sold though there were no cash deposits to back them up, according to the news release.

The money orders were then cashed by Garcia-Von Borstel and deposited into a bank account. Of the $3.2 million, the father and son withdrew $565,000 for their personal use before the account was frozen, Goddard's office says.

Money troubles have dogged Garcia-Von Borstel's time as mayor, since he was appointed by the City Council in 2007, upon the death of Mayor Ignacio Barraza.

Earlier this year, it was revealed that the mayor charged trips to Las Vegas and Mexico City to his city credit card. The council then took back his credit card and the new city-owned Chevrolet Tahoe he received after taking office.

But even after losing those city benefits, the mayor continued to spend heavily, said council member Esther Melendez-Lopez. That was strange for a person who had no outside job and only made $50 per month as mayor, she said.

"If he's spending like crazy, and he doesn't have a job, you wonder where's he's getting the money," she said.
Wow.  Sounds like Bell, Vernon, and Maywood, California.

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